XRP Price May Fall 40% By September – Fractal Analysis

Double-digit percentage gains for XRP (XRP) this month may have reached a tipping point, mirroring trends elsewhere in the cryptocurrency market.

This is a result of euphoria surrounding Ripple’s partial victory against the US Securities and Exchange Commission, resulting in calls for a bullish run to $15 in the coming months.

I believe around $15 in 18 months is reasonable.

If they IPO and time it correctly, could be up to $35 IMO.

Make no mistake… it might not go that high… but $xrp Barring some kind of futile, vindictive SEC appeal, IS is breaking all-time highs in this cycle. (less likely) https://t.co/rrMCuOacrE

– Ben Armstrong (@Bitboy_Crypto) 19 July 2023

Nonetheless, fractal analysis of XRP’s recent candlestick and price action patterns suggest that a sharp market correction is unlikely, especially if history repeats itself.

XRP price fractal drops by 65%

Notably, a 65% price drop was reported in Q2 2021 ahead of some XRP market signals. These are now flashing again, namely multi-year descending trendline resistance and the “overbought” relative strength index (RSI), as shown below.

A descending trendline resistance (denoted “upper trendline resistance” in the chart above) has limited XRP’s gains since January 2018. This price range is supported by another horizontal trendline resistance (purple) near $0.93.

Overall, the resistance confluence, combined with an overbought RSI, now raises the risk of a market correction for XRP. In this case, XRP price could drop to the lower trendline support at $0.52 by September, which is almost 40% downside from the current price level.

Related: SEC Response to Ripple’s Decision Has Been Mixed, Chair Gensler Says Still Under Consideration

Interestingly, the downside target appears to be near XRP’s 50-week exponential moving average (50-week EMA; red wave), increasing the chances of a bounce around this level. Furthermore, Ripple served as a local bottom support during the price decline in Q2 2021.

As of July 20, XRP’s price is up 70% month-to-month, outperforming the broader crypto market, which is up only 5% over the same period.

This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.